In the new Legal Forum Column, BGD partner Tandy C. Patrick discussed shopping center dynamics. Read her advice below and don’t miss our monthly Legal Forum Column in Louisville Business First.


Can medical/office tenants and retail coexist in the same shopping center harmoniously?


In today’s changing world where online shopping continues to challenge brick-and-mortar stores, retail center owners and operators are searching for non-traditional uses in order to fill their centers. Often non-traditional users have strong credit, desire a longer term lease, and attract potential shoppers to a center. Consumers appreciate having convenient access to personal services, such as healthcare, in close proximity to where they live and work.

Establishing expectations and limitations during initial lease discussions with medical office tenants entering the retail environment is essential to a positive long-term relationship. Shopping center owners who elect to include non-traditional users in their centers should consult with an experienced attorney to be certain that the lease addresses issues specific to the non-traditional tenant’s proposed use, and to review applicable zoning, recorded restrictions, and existing leases to determine if the non-traditional tenant’s use is permitted.